NERC Fines 8 DisCos N628 Million for Overbilling

The Nigerian Electricity Regulatory Commission (NERC) has imposed hefty fines totaling over N628 million on eight electricity distribution companies for exceeding the approved billing limits for customers without meters.

The penalties stem from a review of billing practices between July and September 2024, where the affected companies were found to have ignored the Commission’s cap on estimated billing. These caps are meant to ensure fair charges for unmetered customers by aligning their bills with the average consumption of metered users on the same power line.

The sanctioned companies include Abuja Electricity Distribution Company (AEDC), Ikeja Electric (IKEDC), Eko Electricity Distribution Company (EKEDC), Enugu Electricity Distribution Company (EEDC), Jos Electricity Distribution Company (JEDC), Kaduna Electric, Kano Electricity Distribution Company (KEDCO), and Yola Electricity Distribution Company (YEDC).

In a public statement, NERC reminded stakeholders that the estimated billing cap regulation, introduced in 2020, was designed to protect consumers from arbitrary charges in the absence of prepaid meters. However, findings from Q3 2024 showed widespread non-compliance, with several DisCos billing well above the permitted threshold.

As part of its enforcement measures, NERC has directed each of the implicated companies to issue credit adjustments to all affected customers by May 15, 2025. These adjustments must be transparent, traceable, and open to verification.

While individual fine amounts per company were not disclosed, NERC noted that the penalties were calculated based on how much each company overbilled and for how long.

This move is part of a broader initiative to end the abuse of estimated billing and to push for faster deployment of prepaid meters across the country under the National Mass Metering Programme (NMMP).

Implications for Customers

Consumers impacted by the overbilling should see a reduction in upcoming electricity bills once the credits are applied. NERC has urged customers to keep a close eye on their bills and to report any discrepancies either through the regulatory agency or directly to their electricity providers’ customer service channels.